Sports Management

What is a balance sheet? What is an income statement?

-Balance Sheet: Reflects the financial condition of the organization on a particular DATE. -Income Statement: Provides the financial results of the organization's operations over a specific PERIOD OF TIME.

What is the law of demand? What is the law of supply?

-Demand: Consumers will demand less of a product as it's price increases and more of a product as it's price falls. -Supply: Suppliers will increase production as the price of the product increases and decrease production as the price falls.

What are the general responsibilities of a facility director, operations manager, and event coordinator?

-Director: Responsible for overall administration. Developing operational and strategic plans, preparing the financial statements, and budgets for approval, anticipating problems and finding a solution. Hiring and administrative support for division managers and they must follow guidelines. -Operations manager: Personnel, procedures, and activities are contained in this position. Include, Registration, lodging, medical services, communications, merchandising and concessions, transportation, signage, medals and awards, and results. Also includes defining roles and responsibilities of each coordinator. Needs to communicate with all areas of personnel. -Event Coordinator: Providing specific venue and equipment needed by representatives. They need to transport, assemble, erect, and store equipment while establishing procedures. Key is maintaining the venues and equipment. Also designs a work order.

What are the three dimensions of organizational structure? What features are associated with each dimension?

-Formal system of task and authority relationships that control how people coordinate their actions and use of resources. -Formal: This is what we typically see when we examine an organizational chart. These cannot control informal relationships. -Informal: These relationships operate simultaneously within and discuss everything.

What is the difference between general admission and reserved seating? What are the benefits and drawbacks associated with each?

-General Admission: First come, first served. Could be fatal. Gaining front row. -Reserved: Specific seating, section, row, and seat. Easier to control with ushers. Fewer problems.

What are economies of scale and economies of scope?

-Scale: Savings originating from the mass production of goods and services. (Increasing of scale operations.) -Scope: Maximization of resources used throughout an organization. (The number and variety of products and services a company offers and the market it serves.)

What is a market surplus? What is a market shortage?

-Surplus: A price at which the quantity supplied of a product is greater than the quantity demanded. -Shortage: A price at which the quantity demanded of a product is greater than the quantity supplied.

With respect to complexity, what is the difference between vertical, horizontal, and spatial complexity?

-Vertical: Evidenced by the number of levels that exist between the top executive in the organization and the lowest positions and units in the hierarchy. -Horizontal: People on the same level communicating effectively. -Spatial: Refers to the amount of geographical locations in which an organization operates.

What proportion of college athletic departments produce revenues that exceed costs?

16%

Exchange

A baseball organization decided to charge $15 for a general admission, "bleacher" seat because customers are willing and able to pay that amount. This type of price is considered:

bartar agreement

A contract that provides tickets and passes to a radio station in exchange for a free air time promotions is an example of:

Agent

A person who is a legal representative of another person, used extensively in professional sports

What is a "royalty"?

A royalty is a percentage of the selling price for each item sold by the manufacturers.

Target Market

A subgroup of the overall marketplace that has certain desirable traits

How is the concept of "ambush marketing" relevant to the Olympic games?

A tactic whereby a company attempts to undermined the sponsorship activities of a rival that owns the legal rights to sponsor an event; intended to created the sense that the ambusher is officially associated with the event. Liking images of sports or athletes to the host city, but not actually saying Olympic or Olympic games.

What is "festival seating"? What are the benefits of using festival seating? What are problems associated with festival seating?

A type of GA seating but no actual seats exist, shoulder to shoulder in an open floor space. You can sell more tickets, but it potentially deadly and continues to be controversial.

Roone Arledge

ABC executive who saw that sports reconized in prime time had to be more than a sport, but also ENTERTAINMENT!!

When and why were salary caps created in pro sports? How does a salary cap differ from a luxury tax?

Agreements made collectively between labor and management to establish a league wide payroll. Typically a set percentage that the team cannot overpass. Luxury tax is forced upon teams that go over salary budget, because they are overpaying for something they desire as a luxury.

How were the 1984 Los Angeles Olympics notable as a step in the games "going corporate"?

Allowed for sponsorships to use the Olympic rings and this touched off a sport marketing and event management revolution.

What are the qualities associated with an innovative design? What type of sport organization might demonstrate an innovative design?

Allows greater flexibility and not found in entrepreneurial organizations. Climate for creativity or developing the product or service. Marking or ad agency with innovative design.

reverse

An artificial turf company is taking up old field coverings and recycling them. This is an example of what type of distribution?

Air Jordans

An example of sport sponsorship growth

What have economic impact studies found about the impact of sporting events?

Analyses of how expenditures on sport teams, events, or facilities economically affect a specific geographical region. They help in measuring the increase in revenues, tax dollars, and jobs attributable to a sport event or facility. For example, how hosting a super bowl affects a city.

When did professional team sport begin in the United States?

Baseball, 1869 Cincinnati Red Stockings.

How is revenue usually divided between a facility and representatives of an event?

Boilerplate is used to contract the addresses under specific terms. Normally they used a prearranged percentage known as a split to divide sale of tickets, merch, and concessions. These are critical factors in establishing cost.

Champs

Careers are available in sporting goods at manufacturers and retailers. Which one of the following is a sporting goods retailer?

Product

Choosing what to sell

Mark McCormack

Created the first sport marketing agence called IMG in the 1960s

Albert Spalding

Early pioneer in sport sponsorship

What is the purpose of a draft in professional sports?

Equitable system for distributing new talent among all league members. Poor records have advantage over winning records. Football and basketball have fewer players being drafter so more free agents may join a team.

Two Popular bases for segmentation in sport Marketing

Ethnic Marketing and Generational Marketing

4 Historical developments in Sport Marketing

Evolution of Sports Broadcasting, Product Extensions/Promotinal Strategies, Growth of Sport Sponsorship, Birth of Research in Sport Marketing.

Generational Marketing

Focus on Generation Y (born 1977-1996)

Ethnic Marketing

Focus on Hispanics through radio broadcasts and web sites in Spanish (ESPN Deportes)

Don Meredith

Former NFL star (one of Arlede's announcers)

When did free agency begin and what have been the effects of free agency in professional sports leagues?

Free agency began in the 1970's to agree to a certain mount of service to a team, to sell their services, and move from one team to another. Needs to be passed by CBA. (Collective bargaining agreement)

What are the four main sources of revenue unique to sport organizations?

Game attendance, media rights, sponsorships, and licensed merchandise.

Place

Getting it into the consumer's hands

What has been occurring in MLB with respect to the gap between high and low-revenue teams?

Hard for teams demographically to acquire the best players on the field and in the long run it may lead to a decrease in overall fan interest.

How has the importance of gate receipts as a source of revenue in professional sports changed since the 1950s?

Home team retains the majority of the gate receipts, but a portion is given to the league.

20,000

How many hotel rooms must a city have available to meet NFL requirements for hosting a Super Bowl?

Price

How much will be exchanged for the product

Promotion

How the customer will be told about the product

Arlede's 3 sports announcers

Howard Cosell, Keith Jackson, Don Meredith

Types of Traditional Marketing Products

Ideas, Goods, Services

Types of Sports Marketing Products

Ideas, Goods, Services Entities

How has the sport of soccer expanded globally since the early 1990s?

In '94 the US successfully hosted the World Cup and despite scandals, it expanded globally. US soccer was restarted with the MLS league in '96. Expanded from traditional roots in Europe and South America to Asia, North America, and Africa.

Cluttered Marketplace

Increasingly difficult for sponsors to be recognized and achieve the enefits of sponsorhip. (sponsorship may not benefit company)

Which leagues allow teams to negotiate local television contracts?

MLB, NBA, and NHL negotiate for regular season games.

What was the significance of the Sports Broadcasting Act of 1961?

Major broadcasting channels were not allowed to do individual teams anymore and had to be done league wide. Gave them an exemption in antitrust law, granting them rights to negotiate fees collectively with networks.

increase in sales

Marketing objectives developed by a sporting goods store should lead to:

Two Thrusts of Sport Marketing

Marketing sporting products and Marketing other consumer products

What are the four main sources of revenue in professional sport?

Media Contracts, Gate Receipts, Licensing and Merchandising, and Sponsorship are the four main sources of revenue.

How did sponsorship conflicts lead to a public relations battle at the 1992 Summer Olympics?

Michael Jordan covered up the Reebok on his warm up because he was sponsored by Nike. Now, athletes are required to wear what the Olympics give them.

How are the dimensions of organizational structure related to one another?

More more more! Less less less!

What is the importance of collective bargaining in team sport?

Negotiate work term between labor and management. All active league players are in bargaining unit and are laborers, while negotiation and bargaining wit the owners tends to be management.

How has the recruitment and development of elite athletes developed globally in recent decades?

Now teams can recruit top players from other countries nontraditional locations. It also continues to broaden what international sport means. Leagues use influence of these players to market to new audiences at home while expanding their team brands through the sale of broadcast rights, merch, and product extensions overseas.

financial statements and forecasts

On what does accounting for sports franchises usually center?

Veeck's 3 Philosophies

People want to be entertained, Promotions must create conversation afterwards, People want a great atmosphere

Jobs in professional sports typically fall into what two categories? What is the nature of each of these categories?

Player Personnel includes medical, coaching, video, stadium staff, and players. Businesses positions include ticket sales, corporate sales, advertising, promotion, and community/media relations, coordinating.

What trends exist with respect to privatization in facility management?

Privatization is moving management of facilities from the public sector to private companies or organizations. Private owners, but they outsource. Management tasks. Started with professional and lead to college, minor league, and then other countries. Some high school facilities are starting to do it. Used to maintain safe and enjoyable environment.

Segmentation

Process of identifying subgroups of the overall marketplace based on a variet of factors.

The Four P's of Marketing

Product, Price, Place, Promotion

collective bargaining

Professional athletes negotiate salaries, playing conditions, and contract terms as a unit. In what process is their union engaging?

What is the basic formula for determining profit?

Profit= Total revenue - Total costs P(x)= R(x)-C(x)

How do professional sports leagues/teams derive revenue from sponsorships?

Signage in the stadium, or visible on television, seeking new tech savvy inventions.

What are the qualities associated with simple structure? What type of sport organization might demonstrate a simple structure?

Simple Structure: This is suitable for all small organizations that have two major parts, top management and technical core. This would operate like a small local sport club.

differences in customers

Some professional sports teams use the distribution function to provide good customer service. What does this take into consideration?

Howard Cosell

Sport Journalist (one of Arlede's announcers)

What is meant when we say that "interdependence" exists in professional sports leagues?

Teams depend on each other to stage the games that constitute the product. NFL licensed merchandise increases revenue for all teams. All the members make sacrifices and concessions for the long-term benefit and growth of the league.

What development has had the greatest influence on the popularity of sport, the escalation of salaries, and the increase of corporate sponsorship in sport?

Television has increased corporate involvement in professional sport more. Revenue, TV enhances enjoyment, and increase teams that can charge for sponsorships.

What is the Court of Arbitration for Sport?

The CAS mediated sport related disputes that cross national boundaries, such as drug testing.

Marketing

The Process of planning, pricing, promoting, selling and distributing products to consumers and businesses.

Sponsorship

The acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation.

How is the Americans with Disabilities Act relevant for event and facility management professionals?

The act caused facilities to have signage, restrooms, telephones, parking, and shower stalls. Also needed to develop a plan of evacuation. "Reasonable accommodations."

What is "scarcity" and how is the concept of "scarcity" relevant to the study of economics?

The basic economic problem facing all institutions, including sport. A sport product is considered scarce if people want more of the product than is freely available for consumption. Think of how many treadmills are demanded and how many they can purchase. Managers have a maximum quantity willing to devote.

Marketing Mix

The controllable variables a company puts together to satisfy a target group.

What is the significance of MLB's antitrust exemption?

The exemption prohibited companines from creating a monopoly. This gives consumers the ability to have multiple choices instead of just one. This gives baseball teams leverage over the cities in which they operate.

What events of 1972 led to changes challenging the ideal of amateurism in the Olympic games?

These games were shown that Germany was trying to come back from their peril in the 1936 Olympics. But did not really work because 11 Israeli Olympians were killed by German police officers. This event altered the safety and security. Also invented title 9.

When and where are the Paralympic Games held?

They happen two weeks after the Olympic Games and are held in the same place.

What are the qualities associated with a machine bureaucracy design? What type of sport organization might demonstrate a machine bureaucracy design?

This is appropriate for a sporting goods manufacturer because the have high levels of specialization, standardization and centralization. Machines and tech support staff are important.

What are the qualities associated with a professional bureaucracy design? What type of sport organization might demonstrate a professional bureaucracy design?

This is important technical core and administrative support staff with a limited technical support staff, middle management and top management. Appropriate for national sport organizations in which professionals are responsible for products or services, such as coaches, sport psychologists, and professional administrators.

Keith Jackson

Voice of college football (one of Arlede's announcers)

Demand

What a marketer needs to successfully create

it can impact the popularity of that athlete's particular sport

What can happen when a top athlete is extremely popular?

workplace democracy

What idea that effects management and involves employees taking part in all decisions has become more common?

high salary for his/her client

What is NOT necessarily a requirement of a sports agent?

agent contract

What is an agreement that allows a person or agency to represent the athlete in marketing the athlete's ability and name?

licensing

What is it called when a company agrees to give another company the right to use another's brand name or patent in exchange for a fee?

to control the number and location of teams

What is one purpose of a professional sports league?

receiver

What is the intended target of any basic marketing communication?

International Softball Federation

What organization in the past qualified teams for Olympic softball competition?

Mass Marketing

When an organization markets its products to every possible consumer in the marketplace

any that receive federal aid

Which colleges and universities are subject to Title IX?

democratic

Which leadership style would offer a great deal of flexibility in situations that change frequently?

to determine salaries for players

Which one of the following is NOT a reason that a sport organization would have a code of ethics?

broadcast rights

Which one of the following is NOT classified as a source of facility revenue?

Internship

Which one of the following is a valuable learning tool for an employee desiring a future management position?

casual dress code to make guests more comportable

Which one of the following would NOT be considered a necessary characteristic for managing a sporting event?

a college baseball game

Which one of the following would be direct competition for a Cardinals baseball game?

Entry level occupations

Which type of job involves routine activities and is usually held for a short period of time?

all of the consumers who purchase a product

Who makes up the economic market in the sports industry?

licensing helps make consumers aware of professional teams

Why is licensing especially important to the sports industry?

give spectators a higher perceived vlaue

Why might a sporting facility provide an increased level of amenities for spectators?

to identify problems

Why would a football stadium conduct marketing audits?

licensee

a company with a license to reproduce an official brand mark.

licensor

a company with a popular "official" logo.

branding

a company's efforts at developing a personality and image.

brand

a company's identifying mark or logo.

sponsorship

a corporate entity which is involved with a sports property in order to gain exposure and promote their products.

clutter

a drawback to sponsorship, where sponsors blend in with all of the other promotions delivered at an event.

indirect goal

a goal which can be "felt" but not directly measured.

direct goal

a measurable and tangible goal.

niche market

a relatively small market with specialized need.

sports

a source of diversion engaged in for pleasure.

sport

a source of diversion or activity engaged in for pleasure.

signature sponsor

a sponsor who has paid for the most exposure and is most promoted during an event or at a property.

exclusivity

a sponsorship where only one partner is promoted or allowed promotional opportunities

organized sport

a sport which is overseen by a sanctioning body.

audience

all individuals at or exposed to an event.

amateur

an athlete which is NOT monetarily paid.

professional

an athlete which is monetarily paid for performance.

customer

an individual that makes a purchase.

producers

an individual that supplies a product or service.

consumers

an individual that uses a product or service.

consumer

an individual which uses a product or service.

event marketing

applying marketing principles to the promotion and operation of an event.

category

area in which sponsorships are classified (fast food)

licensing

authorized use of a brand, brand name, brand mark, trademark or trade name.

public relations

building a good image in the community, community involvement and good will.

retailer

company which sells merchandise to the end user.

sponsorship

corporate investment in a sports property for exposure.

feasibility

evaluation of a sponsorship to determine "if it would work"

leveraging

increasing a sponsorship with additional marketing efforts.

personal selling

interactive and interpersonal promotions meant to develop relationships and increase customer satisfaction.

sports agent

intermediary that markets talent and determines an athlete's worth in a market.

personal seat license

license purchased by a ticket holder which entitles that person to buy that seat's tickets.

sports property

marketing item of value; such as a league, team, coach, or player

marketing thru sports

marketing of a non-sports product during a sporting event.

marketing of sports

marketing principles used to market a team.

media

method of distribution for a promotional message.

publicity

nonpaid, news-style mass communications about a product or company

advertising

one way mass communications paid for by an identified sponsor.

sports intermediary

organization that markets an event.

ad schedule

organizes promotional message delivery

return on investment

potential of earning for a corporate promotion

competitive parity

promotional budgeting by "follow the market leader"

arbitrary allocation

promotional budgeting by "what I can afford"

percentage of sales

promotional budgeting using a set percent of gross sales.

objective & task

promotional budgeting which funds a specific goal.

return on investment

represents benefits of sponsors & advertisers for being involved in an event.

sales promotion

retailer focused promotion aimed at increasing short term sales goals

luxurybox

seating typically purchased/leased by corporations and used for business meetings and entertainment.

geographics

segmentation based on area, region, or climate.

demographics

segmentation based on measurable statistics.

psychographics

segmentation based on personal interest and activities.

behavioral segmentation

segmentation based on rate of use.

market segment

separating consumers into smaller groups.

stadium as place

simultaneous production & consumption of sports events at a venue

sports marketing

the application of marketing principles to sports and nonsports products through sports

promotion mix

the combination of promotional efforts for a business.

sports cape

the physical surroundings of a venue that impact spectators' desire to stay and return to the venue.

season ticket

tickets purchased for a block of games during a season; typically better quality seats.

gate receipt

total money from ticket sales for an event.

exchanges

transaction between a producer & consumer.

borrowed equity

using the appeal of an event to market a product.